Process Costing

Some companies use process costing techniques to determine product mix. Process costing is a method of allocating manufacturing cost to products to determine an average cost per unit. It is used by companies which mass produce identical or similar products. Since every unit is essentially the same, each unit receives the same manufacturing input as every other unit.

Profit Optimization is a better approach. Optware Enterprise models your business by breaking it down into fundamental processes such as harvest, procurement, manufacturing processes, and markets. We then create a model that represents the activities that take place in each process. The end result is both a process model and a financial model. The Optware Enterprise System is capable of reporting costs by product and process. However, Optware treats individual activities differently in the decision process. The goal is to make the most profit within the relevant timeframe. The System looks collectively at all variable costs, semi-variable and fixed costs in the proper relative relationships in determining the best possible solution.

“We documented wood cost savings of just under $1,000,000 in the first year of using the software.”

Richard DutchakEngineering Manager, Loewen

“We saved 1.5-2% of total fiber costs in transportation savings alone using Optware.”

Michael McCollumPresident Procurement, Georgia-Pacific Corporation

“We picked up well over 35% savings in our manufacturing costs in a one year period.”

Steve KillgoreVice President Solid Wood, Roseburg Forest Products

“Optimization allowed us to substantially improve our paper machine utilization across the Division”

Rosie SteensonManager, Containerboard Division, Weyerhaeuser Company

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Optware Solutions LLC was founded in 1991 (under the name Optware Consulting) as a company dedicated to the application of linear programming technology to the forest products industry. The first system installation was in a plywood plant in France. Optware Solutions has been a pioneer in the integration of relational database technology with linear programming.

Today, Optware Solutions offers a variety of state-of-the-art linear programming-related products and services. Optware Solutions believes that service is our business and we pledge to: place customer needs above our own, to protect confidential information, and to act in a professional manner.